House Bill 1183 creates a new Indiana individual income tax credit for volunteer firefighters. Beginning with taxable years after December 31, 2024, an active volunteer firefighter who serves in Indiana for at least six months during the taxable year may claim a $200 credit against adjusted gross income tax liability. The credit is nonrefundable, cannot be carried forward or back, and may only be used to the extent the taxpayer has remaining state income tax liability after other credits are applied.
The bill also establishes an administrative verification process. The Indiana Department of Revenue must prescribe a standard form for fire departments to certify a volunteer firefighter’s service, and fire departments must issue a confirmation of service by February 1 each year for the prior calendar year. Taxpayers filing paper returns must include the confirmation with their return, while electronic filers must retain it and provide it to the department if requested. The bill is retroactive to January 1, 2025, and declares an emergency.
Impact
HB1183 would add a new section to Indiana Code 6-3-3, directly affecting state individual income tax law by creating a targeted tax benefit for volunteer firefighters. It would reduce tax liability for eligible volunteers, impose a documentation requirement on fire departments, and create an administrative role for the Department of Revenue in designing the certification form and enforcing substantiation rules. The bill affects volunteer firefighters, fire departments, and taxpayers claiming the credit, but it does not create a refund or carryforward mechanism, limiting the fiscal effect to taxpayers with sufficient current-year tax liability.
Sentiment
Based on the bill text and available context, the measure appears generally supportive of volunteer firefighters and is framed as a recognition of public service rather than a controversial tax change. No committee transcript or recorded vote information is available, so there is no documented opposition or debate in the provided materials. The emergency clause and retroactive effective date suggest an intent to implement the benefit quickly.
Contention
The main potential points of contention are administrative burden and tax policy design. Fire departments would be required to track service and issue annual confirmations, and taxpayers would need to retain or submit proof of eligibility, which could be seen as an added compliance step. Another possible issue is the modest size and nonrefundable nature of the credit, which may limit its practical value for lower-income volunteer firefighters or those with little state tax liability. No specific objections or supporters are identified in the provided record.